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Evaluated at a project's own internal rate of return, its present worth, annual worth and future worth are all

  • A.zero
  • B.equal to the first cost
  • C.equal to one another but non-zero
  • D.impossible to determine without further data

Answer: A

The three measures differ only by positive conversion factors, so a rate that drives one to zero drives all three there. That is why the rate-of-return and worth criteria never disagree about a single conventional project.

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